Under the revised Debt Sustainability Framework for Low-Income Countries, Benin’s Composite Indicator is 2.96 based on the October 2019 WEO and the 2018 CPIA, corresponding to the medium debt-carrying capacity.
Government domestic arrears are also included, see below.
In the context of the Government Action Program, the authorities are contemplating several key projects of infrastructure, including some conducted through SOEs. For instance, the government has started discussions with the Chinese authorities to build a new international airport. At this stage, the amount, financing scheme, and calendar are unknown. When information is available, this project will be reflected in the DSA to the extent that it impacts public debt and, more generally, fiscal sustainability.
Guarantees on SOE debt provided by the central government are already included in public debt.
In the paper, debt stocks are measured at the end of the year. For instance, 2019 debt refers to the debt at the end of 2019.
See IMF Policy Paper No. 20/022.
If informal exports were excluded, like in previous DSA reports, the risk of debt distress would remain moderate.
« Balance des Paiements et Position Extérieure Globale », December 2019.
The considered shortening of maturities of commercial external borrowing are as follows; (i) if the original maturity is greater than 5 years, the new maturity is set to 5 years; (ii) if the original maturity is less than 5 years, the new maturity is shortened by 0.7 years.
See Annex III of the Staff Report for the Sixth Review under the ECF-supported arrangement for detailed assumptions.